Contradicting information, isn't it great.
Speaking of contradicting information in this oil scarcity crisis….According to the associated press, oil prices dropped because oil inventories are increasing. Crude oil fell over 4%, and although prices are still higher than they were a year ago, They are still $40 less than the price paid in 1980.
This is good news right? Well, not exactly. The same page allows you to link to another article discussing the continual increase in fuel prices around the world. Analysts predict that prices will continue to rise and that there is little we can do about it.
Of course then you have OPEC saying it has lost control of the oil market and there is not much it can do to lower the prices. With this argument comes a statement from Senator Ron Wyden from Wyoming who states “This is their claim, but the fact of the matter is that nobody knows what their capacity is.” Could we have a problem of asymmetrical information in the oil market? I think the answer is yes.
However, this ‘oil scarcity’ isn’t always a bad thing. The rocketing fuel prices have seemed to create an incentive for hybrid cars in the market. Companies like Toyota are finding new ways to create hybrid cars that do not consume as much fuel, and the market is looking rather good for them. This year Toyota plans on releasing 62,000 of its hybrid SUV. If we don’t have gas to drive our cars, I guess we’ll just develop better ones. We’ve got brains, we just need to use them.